Restaurant Accounting Solutions: 3 Essential Financial Metrics For Multi-Unit Operators

Running multiple restaurant locations means managing complex financial details every day. To keep your business profitable and compliant, you need to track the right financial metrics.In this guide, we highlight three of the most important financial metrics we help multi-unit franchise owners track. These insights will help you make informed decisions and improve your restaurant accounting solutions.

1. Prime Cost 

Prime Cost is one of the most important metrics we monitor for our restaurant clients. It combines two major expenses: food cost and labor cost, showing you exactly how much of your revenue goes toward preparing food for your guests and paying your team.

Prime Cost Formula:
Prime Cost (%) = ((Cost of Goods Sold + Labor Costs) ÷ Total Sales) × 100

To calculate it, add your total cost of goods (ingredients, beverages, packaging, supplies, etc.) and total labor costs (wages, benefits, and taxes), then divide that number by your total sales and multiply by 100.

For multi-unit operators, maintaining a Prime Cost below 60–65% is typically the target. A higher percentage may signal inefficiencies in staffing and scheduling, food waste, portioning, or pricing.

Tracking Prime Cost regularly helps you catch small problems before they affect profitability. Restaurant accounting software like Restaurant 365 or Sage Intacct can help you automate this tracking across locations and give you real-time visibility into the two most important cost drivers in your business.

2. Labor Cost 

Labor costs include wages, benefits, and taxes for your staff. This KPI shows what portion of your sales goes toward paying your team. For most multi-unit franchises, a healthy labor cost percentage ranges from 20% to 30%. Calculate it by dividing total labor costs by total sales, then multiply by 100.

To calculate it:

Prime Cost (%) = ((Cost of Goods Sold + Labor Costs) ÷ Total Sales) × 100

This includes ingredients, beverages, packaging, supplies, wages, benefits, and payroll taxes.

Balancing labor costs across locations is challenging. Staffing appropriately requires consideration of sales by hour, marketing campaigns, local events, and unexpected weather moments.

We help franchisees find the right balance between staffing and profitability using real-time data and labor forecasting tools. Additionally, staying compliant with labor laws and managing payroll efficiently is crucial to avoid costly penalties. Leveraging specialized Franchise Payroll Services can reduce errors and improve payroll processing speed, freeing up your time to focus on operations.

3. Same Store Sales Growth Rate

Sales growth rate measures how your revenue changes over time for stores that have been open one year or more. It’s a simple way to track whether your business is expanding or contracting. Calculate it by comparing current period sales to the same period in the previous year, excluding newly opened or closed stores. 

The formula is: ((Current Period Sales – Prior Period Sales) / Prior Period Sales) * 100.

Use this KPI to evaluate marketing efforts, menu changes, and operational improvements. Segmenting sales growth by location, daypart, or menu category helps identify underperforming areas or successful initiatives. If growth slows or turns negative, it’s a sign to review your strategies. As part of our Financial Advisory services, we help franchise owners analyze sales growth trends and uncover strategies to increase revenue across every location.

---

“I used to rely on end-of-month reports that were always a few weeks late—and by then, the damage was done. Working with Indevia changed everything. Their real-time reporting and clear dashboards helped us uncover issues with overtime and inventory waste that we never would’ve caught otherwise. It’s like having a financial control center in my pocket.”

— L. Ramirez, Multi-Unit Subway Owner

---

Common Accounting Challenges Multi-Unit Franchise Owners Face

Managing financial operations across multiple locations can be complex. From what we’ve seen supporting multi-unit operators, the biggest challenges include:

• Data Accuracy: Avoiding errors in bookkeeping and payroll that can lead to costly audits or penalties.
• Consistency: Ensuring all locations follow standardized accounting and operational procedures.
• Compliance: Staying up to date with tax laws, labor regulations, and franchise agreements.
• Communication: Coordinating between franchisees, restaurant leadership, corporate controllers, and accounting teams.
• Timely Reporting: Getting access to financial reports fast enough to make proactive decisions—before issues escalate.

Addressing these challenges requires a combination of expertise, technology, and clear processes. Indevia Accounting’s Financial Advisory and bookkeeping services help franchise owners overcome these hurdles efficiently.

Leveraging Technology for Restaurant Accounting Solutions

Running multiple locations means juggling large volumes of financial data forsales, payroll, invoices, and compliance. The right tools can make the difference between daily chaos and having a clear view of your business to inform good decisions.

At Indevia, we integrate systems – trusted accounting platforms like QuickBooks Online, Restaurant 365, Profit Keeper, and Zoho Books with custom dashboards designed specifically for multi-unit franchise operators. These interactive dashboards provide 24/7 access to real-time financials, labor costs, inventory metrics, and performance KPIs; right from your phone.

We don’t stop at visuals. Our Financial Reporting & CFO Services turn those insights into strategic action. From helping you understand your numbers to planning for growth, our team delivers proactive guidance backed by data you can trust.

Unlike generic accounting tools, Indevia’s dashboards and advisory services are:

• Built by engineers and vetted by accountants
• Fully customizable to your goals and metrics
• Visual, intuitive, and zero-scroll for fast, focused decisions
• Backed by a team that understands franchise operations inside and out

Together, our technology and expert support help you stay compliant, and run leaner operations, improve margins, and uncover insights.  You will lead with confidence; across every location.

How Top Operators Maximize their Accounting Tech Stack 

• Sync POS and accounting systems to eliminate double entry and reduce reconciliation errors  
• Automate routine tasks: Use software features for invoicing, payroll, and expense tracking.
• Regularly review reports: Schedule monthly reviews of key financial reports to catch margin or cash flow issues early.
• Train staff: Ensure your team understands how to use accounting tools properly.
• Work with experts: Partner with firms like Indevia Accounting to customize your accounting solutions.

If you want expert help implementing these KPIs or improving your accounting processes, don’t hesitate to Book A Call Today with our team. You can also Contact Us to learn more about how Indevia Accounting supports franchise owners.

Ready to Simplify Your Multi-Unit Franchise Accounting?

By focusing on these key financial metrics and leveraging specialized restaurant accounting services, you can improve your multi-unit franchise’s profit and remain compliant without the headache. Start tracking these KPIs today and take control of your restaurant’s financial future.

Managing finances across multiple restaurant locations can be challenging. Professional bookkeeping services tailored for multi-unit franchises, like those offered by Indevia Accounting, help you keep accurate records, control costs, and gain clear financial insights with less stress and less hands-on time needed.

We combine automation with personalized support to handle everything from bookkeeping to integrating POS data and managing payroll to preparing detailed financial reports. Our expertise empowers you to focus on running great restaurants while we take care of the numbers.

Ready to streamline your accounting and get expert support? Book A Call Today or Contact Us to learn how Indevia Accounting can help your franchise succeed.

FAQs